T.N. government to restore EL surrender system from October 1, announces 2% hike in DA for employees

T.N. government to restore EL surrender system from October 1, announces 2% hike in DA for employees

Tamil Nadu Chief Minister M.K. Stalin on Monday (April 28, 2025) made nine announcements in the Assembly for the welfare of government employees. These included the restoration of the earned leave (EL) surrender system from October 1 this year and a 2% hike in the dearness allowance (DA) from January 1, 2025.

Though Finance Minister Thangam Thennarasu had, in his Budget speech, announced that the EL surrender system (suspended due to severe financial strain in the wake of the COVID-19 pandemic) would be restored from April 1, 2026, the CM said it would be restored as early as October 1 this year. The decision would benefit eight lakh government employees and teachers, and the State exchequer would incur an additional annual expenditure of ₹3,561 crore, Mr. Stalin said.

With the Union government approving a 2% increase in the dearness allowance for its employees, the Tamil Nadu government has also decided to hike its employees’ DA by 2%, with effect from January 1 this year, Mr. Stalin said. Over 16 lakh government employees, teachers, and pensioners would benefit from this, and the State exchequer would incur an annual expenditure of ₹1,252 crore, he added.

The CM announced that the ‘festival advance’ to government employees and teachers would be enhanced from ₹10,000 to ₹20,000. About eight lakh government employees would benefit from this. Mr. Stalin also announced that the ‘education advance’ to aid the children of government employees would be increased to ₹1 lakh for professional programmes and ₹50,000 for arts and science and polytechnic programmes.

Mr. Stalin announced that the ‘marriage advance’ of ₹6,000 for men and ₹10,000 for women would be increased substantially to ₹5 lakh. The lumpsum Pongal gift of ₹500 to all pensioners, who retired from C and D Groups, and family pensioners would be increased to ₹1,000. About 4.70 lakh pensioners and family pensioners would benefit from the announcement, and it would cost the State exchequer an additional expenditure of ₹24 crore.

He announced that the ‘festival advance’ granted to pensioners would be increased from ₹4,000 to ₹6,000; the State exchquer would incur an additional expenditure of ₹10 crore. Mr. Stalin said that the committee constituted to look into the Old Pension Scheme, Contributory Pension Scheme, and Unified Pension Scheme, to recommend the one best suited for the State, would be advised to submit its report by September 30 this year.

Pointing out that women government employees availing maternity leave during their probation period were losing their seniority in service with their promotions being affected, Mr. Stalin said his government has decided to resolve the issue.